Solar ruling leaves sector in limbo…again

At the end of last year, the Government said the solar PV feed-in-tariff was being cut on the grounds that it was too expensive, that there was not enough money in the pot to support the rise in installations.

Yesterday, the High Court ruled not only was that action illegal, it has ordered the Government to pay the costs of the case. We can just about see the irony through our gritted teeth.

There are mistakes, and there are expensive mistakes. And then there’s the expensive mistakes which are compounded by the sheer refusal to admit them.

That’s what the Government appears to be doing at the moment. Three High Court judges unanimously agreed that the proposed cuts to feed-in-tariffs for installations completed after December 12 last year were illegal.

Their decision was on the grounds that the consultation on the proposed changes to the scheme did not close until December 23. Yet the Government has announced it plans to go to the Supreme Court, leaving the issue and the industry in limbo once more.

So yesterday’s ruling, though welcome, still leaves the sector with little clarification about what comes next. We understand that solar payments must be cut in line with falling costs but the Government must now accept that its illegal actions were putting the industry and thousands of jobs at risk. Further legal action will create ongoing uncertainty for hundreds of companies with pending contracts.

It will be interesting to see if the DECC now implements its contingency plan in the meantime to cut tariffs from April 1 for all installations completed on or after March 3, which could prompt a month-long rush similar to what happened at the beginning of December.

The industry needs stability, which is not a word which can be applied to the last few weeks. If the Government is serious about its commitment to the renewables, it should accept this ruling and get back down to the business of supporting a sector which is helping to grow the UK economy as well as creating sustainable jobs.

Will 2012 be the boom year for renewable energy?

 

Thanks to the introduction of the Renewable Heat Incentive, we’re predicting 2012 could be a boom year for the sector.

While confusion still reigns over the solar PV feed-in-tariff following a judicial review, the RHI programme is up and running for non-domestic installations and should be available for homeowners later this year.

Oil prices are unlikely to drop and gas and electricity prices are going up which means the sustainable alternative will prove even more attractive to prospective customers.

This week, the Chief Scientific Adviser to the Department of Energy and Climate Change, Professor David MacKay, has also spoken out about the financial value of renewable energy compared to traditional sources of power.

Professor MacKay has warned that continuing to rely on expensive imports of fossil fuels such as gas and coal would cost the equivalent of £4,682 per person per year – as well as missing the carbon reduction targets the UK has signed up to.

However, he has calculated that investing in renewable sources of energy would save £84 per person per year, bringing the cost down to the equivalent of £4,598.

But it is vital to ensure that the industry is ready to meet the demand. It has the technology, the capital equipment and the supply chain, but it needs the installers to acquire the relevant skills in order to cope with the anticipated rise in demand.

The customer also needs to know the small print surrounding the RHI, because only a handful of misinformed customers failing to get their RHI payments will generate a black cloud over everyone involved and the technology itself.

Just as ‘cowboy’ solar PV sales reps gave the industry a bad name by promising the effectiveness of panels on north facing roofs, the sector must work to ensure there is not a catalogue of horror stories of people spending money on equipment which isn’t suitable or correctly installed.

At Organic Energy, we work alongside committed installers, trained and accredited to the highest level. Our ÖkoFEN boilers are Microgeneration Certification Scheme (MCS) accredited too. Biomass boilers under 45kW must be MCS accredited and fitted by an installer who is also MCS accredited, in order to qualify for RHI payments.

What that means is that we’re already ready for the promising year we’re predicting. We’re passionate about our technology and its capabilities. We’re ahead of the game, with the innovative systems, expertise, accreditation and specialist knowledge in place now, to help guide customers through the renewable choices and incentives available. If you’d like to know more, give us a call.

Happy New Year!

Money to burn? How consumers are lining the pockets of the Big Six

Surely than can be no better argument for considering renewable energy heating for your home than this week’s headlines on fuel bills?

We had to look twice when we saw the new figures, which show that profit margins at energy firms had soared 733 per cent in the last four months.

Organic Energy calculated earlier in the year that the average dual fuel customer was facing a rise of around £135 by the end of 2011.

But now price hikes over the summer have revealed that the average annual gas and electricity bill actually soared by £175 over the summer and could top £1,345 per annum by Christmas.

Industry regulator Ofgem has revealed the Big Six gas and electricity firms now make an average of £125 per customer a year on dual fuel bills, and that’s up from just £15 in June.

There are numerous reasons for the rise, including VAT, operating costs and a 40 per cent increase in the wholesale cost of gas over the last year.

So it’s perhaps not surprising that we’ve seen a corresponding sales rise of the renewable heating options we offer. Both the number of wood pellet boiler and solar PV installations have soared in the last year as customers realise by simply turning up the thermostat they’re lining the pockets of the Big Six.

Of course, these companies, British Gas, Scottish and Southern Energy, Scottish Power, E.ON, RWE npower and EDF, have reacted angrily to the Ofgem figures.

British Gas says they are ‘misleading’ because for the first six months of the year, the company’s margins per household were actually £24. However, it is undeniable that all six have raised bills since August.

The figures are part of a review by Ofgem into how customers are charged and whether tariffs could be made simpler. And it has been welcomed by Energy Secretary Chris Huhne who said the Government and Ofgem wanted to work together to increase competition in the energy market to keep prices down.

We’re a renewable heating company so, of course, we’re going to point out that there are other ways to keep the bills down. But, importantly, we can prove it. We already know that we’re saving money for customers who have installed our ÖkoFEN automatic wood pellet boilers and SCHOTT Solar PV systems. One of our latest PV installations has resulted in a customer’s energy bill being cut by more than 65 per cent.

And not only can we help cut your bills, we can show you how you can receive incentive payments for installing our wood pellet boilers or solar PV.

For example, under the Renewable Heat Premium Payment, £950 is available to eligible householders and businesses installing a biomass boiler. Customers can already take advantage of the Feed-In-Tariff for solar PV and non-domestic biomass installations will also be eligible for the Renewable Heat Incentive when it is introduced.

So if you’re fed up with the price hikes and looking for an alternative, give us a call.

Is the sudden FIT cut entirely bad news?

The sudden announcement by the Government that it is cutting the feed-in tariffs for small-scale solar installations by more than 50 per cent has caused a storm of outrage across the renewables sector.

There have been many cries this week that the move, reducing the FIT from 43p per kWh to 21p per kWh, will “kill the UK solar industry”.

To a large extent this anguish is understandable. However, from our perspective at Organic Energy, we don’t consider it a totally unexpected move. In fact, many people might be surprised to hear that we don’t even consider it as an automatically bad thing.

We won’t, perhaps, be entirely popular with some of our industry colleagues for taking such a position, but it is our contention that it is better to have this still fledgling sector on a realistic footing from its early days of strong growth, rather than dash people’s expectations in the future or end up with a many-tiered system in which the early adopters are better rewarded than those who come to small-scale renewables later.

The fact that the Government has felt the need to slash the FIT for small installations is indicative of the popularity of such projects already. That popularity has given pause for thought regarding how much the whole thing is looking like it will cost.

That is not to say that it could not have been handled better. These sudden changes of direction are good for no-one and if businesses, and the many thousands of people who work in them, are left out-of-pocket by this move, there may be greater questions for those in power to answer.

As to the future of the sector, our view is that people who are committed to the concept of renewable power, be it a wood pellet boiler or solar PV (or both), are committed for ethical reasons as much as financial ones. They will proceed with the project if it meets their cost expectations with regard to initial outlay and we believe they will accept a longer return-on-investment period.

Looking from another perspective, the higher the FIT, the greater the risk of people entering the sector with a view to making a quick profit, regardless of whether they are giving good advice to customers or have the proper experience to ensure people are not wasting their money on inappropriate installations.

There was, and perhaps still is, a distinct danger that renewables could become the next double glazing; a marketeers dream that becomes saturated with fly-by-night operators standing behind their own versions of lies, damn lies and statistics…

As a company with genuine belief in renewable energy as something far more than a business opportunity, and with the benefit of more than a decade-long view of the sector by our pioneering and passionate leader, Andy Boroughs, we would much rather see somewhat steadier, more sustainable growth in the industry. Technology will improve constantly, bringing down equipment and installation costs and renewable power at the small scale will begin to converge more with the costs of grid power.

This might all take some time, but it is imperative that it happens in a more organic way than being forced along by too-high incentives and people who care only about their next commission payment.

Harsh words? Yes, perhaps. But this is all far more important to all of us than political point-scoring or short-term dividends. Let’s take it steady and get it right.

Schizophrenic Attitude to Climate Change?

Here at our Welshpool offices, we work hard to promote a low carbon economy, offer biomass and solar PV solutions for efficient and environmentally-friendly heating options.

We advise clients and potential customers on how they can take advantage of the Renewable Heat Incentive (when it finally is introduced) and the Feed-in-Tariffs. Like many companies in our sector, we are convinced that the UK can drastically cuts its emissions with the right investment and support.

But therein lies the problem. This week the Government has been accused of having a “schizophrenic attitude” to climate change and being short-sighted over the potential of green energy.

We’d like to point the Government in the direction of our company, which has seen record-breaking sales of biomass boilers in the last year. Our turnover is up and our ÖkoFEN wood pellet boilers are proving to be the green heating source of choice for customers from schools to charities and large estates to domestic homes.

So if we can see the potential, and the consumer can see the potential, with our sector one of the fastest growing industries in the UK as a result, it begs the question. Why can’t the Government see it as well?

Prime Minister David Cameron MP this week flew in the face of his own vow that his Government would be the “greenest ever” when he said he was delighted to give BP the go-ahead for the next phase of development of the huge Clair Ridge oil field.

But is he putting the money where his mouth is? The Environmental Audit Committee (EAC) said a recent decision to review targets for cutting emissions in half by 2025 was seeing delays in green energy investment which could push up traditional energy prices.

Last month, a last minute hold-up to the introduction of the RHI was announced as the European Commission dithered over the level of support paid for larger biomass systems.

Dr Neil Bentley, the CBI’s Deputy Director-General, recently said both the UK Government and international negotiations are failing to provide the leadership business needs to invest in green growth. He said the UK was out on a limb not ahead of the pack.

The last word must surely go to Joan Walley MP, EAC chairwoman, who said: “The long-term carbon-cutting commitments set out in the Climate Change Act are supposed to provide certainty that Britain is determined to reduce emissions by 80 per cent by 2050.

“Unfortunately, the government’s somewhat schizophrenic attitude to climate change seems to be undermining that confidence. Green investment should be seen as a win-win solution to our economic problems, helping to stimulate growth and rebalance the economy, at the same time as reducing pollution.”

Well said, Mrs Walley. Well said.

 

Film industry standard is no celebrity ‘greenwash’

US movie stars like Cameron Diaz and Leonardo DiCaprio are well-known for flying the green flag in Hollywood.

Actor Matt Damon has spearheaded environmentally-friendly projects and Brad Pitt has won an eco-award from the US Green Building Council.

But now it appears it’s time for the British film industry to step up – and this is not just celebrity-endorsed greenwash either.

Bosses behind the UK’s cinematic hits are taking the lead in the global entertainment market by unveiling a new standard to improve the industry’s environmental, social and economic impact.

The British Standards Institution (BSI) in conjunction with the industry has introduced  a ‘sustainability management’ standard, known as BS 8909.

It can be applied across the film supply chain from planning to production, through to editing, distribution, screening and archiving.

Colin Firth’s ethical retail organisation Eco Age has played an integral role in the launch of the standard, which when adopted means a film’s environmental and social impact is reduced

Of course, celebrity endorsement can only help the sustainability cause. We live in a celebrity-obsessed culture where famous people are trend-setters, we read about them, we look at their pictures, we imitate their style.

Johnny Depp’s private island is completely solar powered. Daryl Hannah has a biodiesel car, powered by recycled cooking oil. And closer to home,U2′s Bono has installed a wood-pellet boiler to heat his Victorian mansion in Ireland.

It’s good to see celebrities putting their green credentials on record, and great to see business backing them up with a solid planet-protecting strategy.

Organic Energy can assist with green heating systems, as the sole UK distributor for the ÖkoFEN range of wood pellet boilers as well as being a UK distributor for leading global solar PV manufacturer SCHOTT Solar.

For more information give us a call or see www.organicenergy.co.uk

 

 

Backing biomass – a flexible and affordable technology

From this month, anyone installing a biomass boiler can offset the cost by around £950 under the Government Renewable Heat Incentive scheme.

While the summer headlines have been all about solar PV, as the weather turns colder and the leaves drop from the trees, we know homeowners are watching their fuel bills rise and wondering about alternative options to heat their property.

And that’s why we’re delighted to see the timely launch of the Back Biomass campaign from the Renewable Energy Association which is aiming to deliver a clear message to the Government on the benefits of biomass.

The REA says that as well as stimulating economic growth and valuable green jobs in the UK, biomass technology can boost our energy security and enable and support other types of energy generation on the grid. At a time where taxpayer’s money is tight, biomass is an affordable way to generate low carbon energy.

Organic Energy’s biomass boilers are ultra-efficient ÖkoFEN wood pellet heating systems which can heat a small house through to a large office or business premises. They are totally automatic and virtually maintenance free as they feed and clean themselves.

The boilers burn wood pellets – a relatively cheap, renewable, sustainable and low carbon fuel. In addition to this, our boilers are highly advanced and burn the wood pellets so efficiently, CO2 emissions are kept at a very low level.

Like the REA, we know that heat and power from sustainable biomass offers proven, practical, secure low carbon energy as part of a balanced energy mix.

But what we also believe in is the financial sense behind installing biomass – whether you’re considering heating a shopping centre, an office complex or your home.

Our figures show it really does pay to be green, with biomass not only attracting the Renewable Heat Premium Payment but also tariff based support for the non-domestic sector. Phase two of the RHI will see support introduced for homeowners by next year.

For a detailed breakdown of how the RHI and the FiT will work for the installation of one of Organic Energy’s biomass boilers, have a look at our figures.

If you’re considering biomass as an alternative to gas and oil, then give us a call. We can advise you on the financial support available as well as provide a checklist to see if your installation would be eligible for the RHPP and FiT.

And if you’d like to support the REA’s Back Biomass Campaign, you can download a letter from the campaign to be sent to your MP.

Why charities are finding it pays to be green

The Dogs Trust, which recently installed one of our ÖkoFEN wood pellet boilers is a great example of a charity which has seen the financial sense in renewable energy.

Not only will the heating and hot water costs be cut dramatically, the charity can take advantage of the Renewable Heat Incentive. And with a range of other renewable initiatives at its Shropshire site, including solar PV, the charity can also access the benefits of the Feed-in-Tariff.

But the Dogs Trust isn’t the only charity which has embraced renewables as awareness of the benefits of the Renewable Heat Incentive for non-domestic installations increases.

In County Durham, tenants of a new affordable housing development have solar PV panels supplying power to their property with the surplus electricity feeding into the National Grid.

It’s a great move by the Durham Aged Mineworkers’ Homes Association - a charity which provides retirement homes in the region – which installed solar PV on ten new bungalows.

The Taraloka Retreat Centre near Whitchurch in Shropshire is another charity which also welcomed the installation of a renewable system that cut costs and was in keeping with the charity’s aim of reducing its environmental impact.

And the reason why charities are increasingly turning to green energy solutions is because they, like not-for-profit companies and communities, can benefit from a range of grant support as well as qualifying for the Renewable Heat Incentive.

Organic Energy provided an Energy Box with an ÖkoFEN wood pellet boiler to Taraloka with the retreat obtaining 50 per cent of the cost of the system via a grant from the Government’s Low Carbon Building Programme. The charity also received additional funding from Scottish Power Green Energy Trust, which funds community-based renewable energy projects, plus an interest-free loan from the Carbon Trust.

If you are a charity, a school, a university, a not-for-profit or third sector organisation then we can help you find not only the best renewable solution, but assist with information on what financial support and grants may be available.

Give us a call on 01938 530070 or email us for more information.

Payment pot to boost renewable heating

It is somewhat ironic that in a week when Britons have been basking in sushine and enjoying high temperatures, a scheme is launched aimed at offering them a grant to buy a new heating system.

An ÖkoFEN Pellematic boiler, as supplied by Organic Energy

But this isn’t cash for just any boiler system, this is the Renewable Heat Premium Payment – a £15 million pot available between now and March 2012 for UK households wanting to invest in green heat systems.

The RHPP is a forerunner to the Government’s domestic Renewable Heat Incentive which will reward those installing renewable heating technology through a series of tariffs.

The difference with the RHPP is that it is essentially a voucher system which can be used towards the cost of biomass systems, like Organic Energy’s automatic wood pellet boilers.

Homeowners can apply for vouchers of between £850 and £1250 towards the cost of having this technology installed. For example, a purchaser of one of our ÖkoFEN Pellematic boiler systems are entitled to £945 towards the cost.

Solar thermal systems, like the Pellesol solar hot water heating panel and Gasokol solar hot water heating systems from Organic Energy, attract vouchers of £300 each.

The scheme was launched this week and the Energy Saving Trust, which is managing the RHPP on behalf of the Government, says it has already received more than 2,500 expressions of interest.

However there is something that we think needs to be made clear to consumers considering  a  move to renewable heating systems: just because you may be entitled and even receive the RHPP, there is no guarantee that you’ll get the Renewable Heat Incentive.

The Government says that people in receipt of the RHPP will be able to apply for the full RHI tariff support once the scheme is introduced in 2012.

But because there have been no proposals published on how the RHI will work in the domestic sector, there can be no guarantee that just because a household was eligible for the RHPP, it will automatically be entitled to the RHI.

But the announcement of the RHPP is a boost for the industry and will encourage more householders to move towards green heat. Any home so long as it’s the main residence and has been adequately insulated, can apply for RHPP for solar thermal. For biomass, the home must be without gash central heating.

Installations have to be carried out by qualified installers registered under the Government’s Microgeneration Certification Scheme (MCS), of which Organic Energy is a member.

If you’d like to know more then give us a call on 01938 530070 or have a look at www.organicenergy.co.uk where we’ve some information on our range and a guide to the RHI.

Renewables sector stumped by solar PV snub

Onshore wind? Tick. Offshore wind? Tick. Biomass heat? Tick.

What do all the above have in common? They are all on a list of eight key technologies which the Government believes can contribute 90 per cent of its target of generating the country’s energy from renewable sources by 2020.

Notable by its absence on the list in the UK Renewable Energy Roadmap published last this week? Solar PV technology.

Although it is a blueprint for how the Government aims to meet its target of generating 15 per cent of the UK’s energy from renewable sources within the next nine years, it has omitted both solar PV and solar thermal from the list.

It is a perplexing omission, especially considering that the 106 page document actually includes a solar PV case study.

Of course, as passionate believers in renewable energy and its potential to more than meet the Government targets by 2020, we welcome any plan which helps the UK reduce its dependence on traditional energy sources.

But to make no reference to solar technology in a list which includes onshore wind, offshore wind, marine energy, biomass electricity, biomass heat, ground source heat pumps, air source heat pumps and renewable transport is confusing for the renewables industry.

The solar sector is just getting off the ground, instead of niche it is becoming more mainstream, projects are being developed to take advantage of the Government’s RHI premium payment scheme and the Feed-in-Tariffs.

So you can understand why there is confusion. One on hand there appears to be a groundswell of support for solar PV and the benefits it can bring from both an environmental and a financial viewpoint.

But then the Roadmap effectively marginalises the technology, believing that together with hydropower and geo-thermal power, it will only generate the remainder of the Government’s ten per cent target.

There is £30 million being pumped into offshore wind innovation. And there is £20 million to support marine schemes.

Perhaps it was a wet and windy day when the authors of the UK Renewable Energy Roadmap put the document together. And although we may not have the heat of the Caribbean, we do have sunlight. Energy generated via solar PV is based on daylight not heat. So on a cold, sunny day Solar PV will produce more electricity per hour of sunlight because the panels work best when they are cooler.

Let’s hope the Roadmap is an action plan not set in stone. Solar PV is a vital part of the renewable energy mix and it is the diversity of renewable sources which will make any effort to cut back our reliance on gas and oil far more successful.